401. Memorandum From the Special Assistant to the Under Secretary of State for Mutual Security Affairs (Barnes) to the Deputy Director for Program and Planning, International Cooperation Administration (Ohly)1
SUBJECT
- Development of Naval Base in Chile
This represents a belated reply to your memorandum of July 192 in which you requested the views of the Department of State on a proposal by the Department of Defense for United States support in establishing a naval base at Mejillones, Chile. I also refer to the proposed FY 1958 military assistance program for Chile in which the Military Assistance Advisory Group to Chile recommended assistance to the Chilean naval base at Talcahuano.
In our view the economic situation in Chile is such that it would not be desirable to encourage the Chilean Government to expend funds for the development of a new naval base. The inability of the Chilean Government to devote any substantial resources of their own to such a project is evidenced by the difficulty it is experiencing in maintaining the present naval base at Talcahuano. If any United States assistance is to be provided, we consider that it should be directed toward assisting the Chilean Navy in reorganizing and improving the existing naval base at Talcahuano.
We are not aware of any political factors which would suggest the desirability of providing assistance to Chile to develop a new naval base at Mejillones.